Hard Money Loan

A hard money loan is a type of short-term, high-interest financing secured by real estate. Unlike traditional loans, hard money loans are based on the value of the property used as collateral rather than the borrower’s creditworthiness. These loans are often used for real estate investments, such as property flips or developments, where quick funding is needed. 

Hard money loans require careful evaluation of the collateral to ensure the loan is adequately secured, given the higher risk and interest rates involved.